HUL signs trademark licence agreement with parent Unilever

PTIDec 15, 2009, 09.38pm IST

MUMBAI: FMCG major Hindustan Unilever today said it has signed a trademark licence agreement with Unilever, under which it will pay one per cent of net sales on specific brands as royalty to its UK-based parent.

The board of directors, during its meeting held today, has "approved a trademark licence agreement with Unilever, which provides for payment of trademark royalty at the rate of 1 per of net sales on specific brands," Hindustan Unilever (HUL) said in a filing to the Bombay Stock Exchange.

Further, the board also approved amendments to the existing technical collaboration agreement (TCA) with Unilever Plc to include additional product categories, where technical inputs are provided by Unilever, it said.

The agreement would also include products of specified categories manufactured by third party manufacturers, where technical inputs developed by Unilever are made available to them, it added.

"The revised TCA and the trademark license agreement will come into effect from January 1, 2010 and will enable the company to continue to leverage Unilever's capabilities to further build and grow the business in India," it said.